Johnson Controls announced plans to acquire York International Corp., a global supplier of heating, ventilating, air-conditioning and refrigeration equipment and services, for about $3.2 billion in an all-cash transaction.
Under the definitive agreement unanimously approved by the boards of both companies, York shareholders will receive $56.50 for each outstanding share of York common stock. The $3.2 billion price includes about $800 million of York debt to be assumed by Johnson Controls.
York, with estimated sales of about $5 billion, will become part of the nearly $6 billion Controls Group of Johnson Controls. This combination is expected to increase Johnson Controls' growth rate in the $200 billion industry for global building environments.